B&R 9.5 U4 - How does work the new licensing system??

[SebCharp]

Hi Folks,

I hope someone will be able to explain me how does work the new VEEAM licensing system. Our local reseller does not understand nor the French VEEAM sales office.
Our environment looks like this:

• 1 VMware hypervisor running 16VMs (few are Win 2012 servers, but the majority are CentOS 7 VMs).
• 2 physical servers running RedHat 6 with VEEAM Agent for Linux

Our license until now:

• 1 perpetual license (Socket based)
• 2 annual VEEAM agents

During the last update of our RedHat servers, the VEEAM Linux Agent upgrade to the version v3. Backups were not working anymore. So, we update our B&R from the Update 3 to the Update 4 (BTW, why such naming convention?? I thought it was a minor update, but it wasn't ).
Guest what? The Linux agent was now complaining that the license was no more valid.

I contacted my local reseller to get a new quotation (our annual maintenance was nearly expiring). This is where the nightmare started:
According the information we got, we need to buy a full new license for our Backup & Replication (standard version) due to the new 9.5 Update 4!! The annual maintenance cannot be renewed.... Wait a minute... It supposed to be a perpetual license (bought 2 years ago), isn't ? However we need to buy it again ??? What??
The other "interesting" information is: VEEAM doesn't sell anymore the Linux Agents.
We end-up with a quotation which is 45% more expensive than expected !

The nightmare is not over yet! The VEEAM reseller is unable to explain me how the new licensing system is working.
According to them, we got 1 bundle of 10 instances with their quotation.
They send me this link → https://www.veeam.com/licensing-policy.html
From my understanding (I'm pretty sure I didn't understood it correctly), we got 16VMs + 2 physical Linux, does-it mean we need 16 + 2*3 (there is a 3x factor for the Standard version) = 22 Instances? Which would mean, we need to buy 3 bundles?
Our reseller doesn't even know if this is a perpetual licenses or not...

Could anyone help me to understand?
I'm completely lost, my license are expiring tomorrow but I can't use them since the 30th of January, the French VEEAM sales are useless (after 1 month still no solution from them), my RedHat backups are out-dated,... I told you. A real nightmare.

Seb

[Gostev]

Hello,

After installing Update 4, your physical server backup will be covered with the perpetual socket-based license, which now has 1 instance included for every socket (up to 6 instances maximum). For more information, please refer to the Licensing section of the What's New document.

In other words, you no longer need your agent license at all - so just let it expire, and don't renew. You did not tell what is your product edition, but since you only need to backup 2 servers, the included instances will cover your needs regardless. And going forward, you should only be using your existing perpetual socket-based license with Veeam Backup & Replication. That is, until you have the need to protect more physical servers than the included instances will cover, of course!

It's true that there's a learning curve with the new licensing, so Veeam sales and resellers may be confused. So, you did the right thing by asking for the information at the source, here on the Veeam R&D forums. This is why we have these forums in the first place!

Do let us know if you have any further difficulties with this transition.

Thank you!

[SebCharp]

Hi Gostev,

First of all, thanks for helping me, because I'm completely lost with the new licensing system (maybe a language issue since English is not my native language).

Here is the VEEAM software we are using → Backup & Replication 9.5 Update 4 Standard Edition

What I don't understand is the "Instance" things. According the conversion table for the Standard Edition, I need 1 instance per VM + 3 instances per RedHat server.

Our French reseller said we need to buy a new license, because the maintenance cannot be renewed on "old" license (prior to the update 4).
In the quotation we got, it says "Veeam Backup & Replication standard 1 year + Annual Maintenance for Veeam Backup & Replication standard".
- Does-it mean, there is no included maintenance when buying a new license ?
- The quotation doesn't say anything about "perpetual", nor "socket".
- Moreover, we got 16VMs + 2 RedHat server, so my understanding is I need 22 Instances...

According the new licensing, what I need is 1 license "Perpetual 1 Socket" + 6 Instances (meaning 1 bundle of 10 instances).
Is it what we get by default when buying a new Backup & Replication 9.5 Update 4 Standard Edition license?

Sorry, but this is very confusing to me.

Seb

[Gostev]

Since you're talking about "renewing maintenance", I assume you're using perpetual socket-based license right now. You should just renew this license normally. There's absolutely no reason why maintenance cannot be renewed on your existing license.

This perpetual socket-based license is also all you need going forward, based on your very limited physical server protection needs (just 2 server). You don't need to buy or renew any other licenses besides your socket-based license.

In presence of the socket license, VM protection will keep using socket-based licensing, so your protected VMs will NOT require or use Instances. Just as before Update 4, you can still protect unlimited number of VMs with your socket license - as long as all protected VMs run on the host covered by the socket license, of course.

New to Update 4 are gifted Instances (1 per licensed perpetual socket, with the maximum of 6). These gifted instances can be used to protect any other workloads that Veeam Backup & Replication is capable of protecting. In your specific case, the number of these gifted instances will be just enough to cover backing up those 2 RedHat servers with agent-based backup.

Let me know if you have any further questions.

Thanks!

[SebCharp]

Hi Gostev,

Thanks a lot! I got a better picture now.
I will talk again with our local reseller, because the message they got from VEEAM France was "we cannot renew the expired maintenance, you need to buy a new license".

Have a nice day,
Seb

[Gostev]

Wait, how long ago did your maintenance contract expire? This may be the culprit. If you had a significant gap in your maintenance contract, you may indeed not be able to "renew" what you don't have any longer.

[hirratas]

I hate the U4 update. I thought it is just another update. I have many other systems to administer is not my hobby to read news or this diary mail from Veeam.
My Veeam partner and their distributor know nothing or not much about it. They just tell me to wait.

Crazy messages after the Update 4 update ("30 days till jobs will be disabled"). New license model looks like a cash cow.
Time to look for other Solutions. Veeam got too big too fast. It is like this vmware vram pricing model....

My licenses run out end of march, and my Veeam sales contact even does not know if I can downgrade license and if they will work with agent anymore.
Veeam send mails in english to many customers in germany and some of them did not fully understand.

[SebCharp]

Wait, how long ago did your maintenance contract expire? This may be the culprit. If you had a significant gap in your maintenance contract, you may indeed not be able to "renew" what you don't have any longer.

The maintenance expired the 25th of December 2018.
Since our 2 Agent Linux was expiring the 27th of February 2019, I waited end of January 2019 before requesting the maintenance renewal (the 30th to be precised). So, about 1 month after the expiration date.
This idea was to synchronize the B&R and Agent Linux renewal period.
The nightmare started at this moment with the deployment of the Update 4.

@hirratas
I do understand and share your frustration.

[Gostev]

The maintenance expired the 25th of December 2018.

Well, in that case I assume you should be allowed to renew, of course. I am not sure what are the specific renewal rules for the expired maintenance, but common sense tells me such a small delay can't be a blocker. Let me know if you have any difficulties renewing!

[SebCharp]

I will!!
Thanks Gostev, so far you are the only one who has been able to give me a clear answer. Now, I know exactly what my local reseller must request.

Seb

[Gostev]

New license model looks like a cash cow.

What makes you think so? Subscription pricing did not change, and is still the same as when we introduced subscription option many years ago. The only thing changed is the license file format, which is now portable (works with any Veeam product).

Moreover, as you can see from this conversation, in OP's case is exactly the opposite of "cash cow": Update 4 will allow him to keep protecting the same workload WITHOUT renewing his agent subscription, which means paying Veeam LESS.

Or, take another feature of the new licensing: the ability to exceed license usage, which was not possible before... this doesn't really help Veeam make more money, does it?

Of course, as any change and transition in life, this one can be painful as well for our customers and channel - but these changes were done specifically to simplify Veeam subscription licensing for end users going forward. Obviously, things like the ability to exceed license usage, or providing free instances for customers cannot help Veeam revenue in any way... for example, I can tell you that those gifted instances alone mean a few million USD worth of current agents subscriptions not renewed in 2019. Cash cow, you say?

[hirratas]

Hi gostev.
Last year I bought several veeam agents for workstation including 1Y Service for 39€ incl. Tax per piece.
Now the cost of one of this agents is 0.5 Instance.
I think with the new license model you can not tell me what the new price of this agent is in €, because the price for 1.0 instance depends on the B&R Edition right?

[ASG]

I think the License Information in the Console isn't helping... I've bought 8 perpetual socket-based Licenses and 10 Server Agents (subscription) and 5 Workstation Agents (subscription) - after merging the Licenses for U4 (which we needed to do since I can only import 1 file - so either Instances only or sockets only (and the gifted 6 Instances) there now shows an Expiration Date and Type Subscription. Are the Sockets really expiring after the given date? There were quiet not-so-cheap Enterprise Plus Edition perpetual Licenses when we bought them last Year...

And did I understand it right that the 6 for-free Instances (in my case as I have 8 Socket Licencses) could only be used if you DON'T have paid Instances? Because I ended up with 20 Instances (rounded up to the next 10 when merging the 15 Agents) and I don't see the 6 free Licenses in the License Information in the console...

[hirratas]

I get 10 instances for 5 Workstation Agents. Fair enough.
But also only 10 instances for 15 Workstation Agents.

[ASG]

Nice to see Gostev answer the question about the 6 Free Instances Licenses in his weekly e-mail. However I'm still missing reliable information wether merged perpetual licenses will expire.

[mcz]

AFAIK, the expiration date of the license in the B&R console displays the earliest expiration date of all the merged licenses. I got confused too when I installed it. After expiration you will probably have to do an unmerge in the portal and then merge the still existing licenses again to keep it running but I'm not 100 % sure if it is really needed. Please correct me if I'm wrong!

What I'd like to see is the expiration date of each license separately instead of just showing one.

e.g.

socket-license 01.01.2023
10 instances 22.12.2019

Thanks!

[Gostev]

Last year I bought several veeam agents for workstation including 1Y Service for 39€ incl. Tax per piece. Now the cost of one of this agents is 0.5 Instance. I think with the new license model you can not tell me what the new price of this agent is in €, because the price for 1.0 instance depends on the B&R Edition right?

Correct, instance weight depends on the product edition (see 2.1.1) so it is more complex to think in these terms. Just using MSRP makes it much easier, since as I have already noted earlier, the subscription pricing remains the same with U4 and Instance licensing. Before any term length discounts and in USD, the price is $50/yr for Workstation, $150/yr for Server.

Regarding your screenshot, keep in mind that Instances are sold in bundles of 10. Based on what I see, you have an Enterprise edition? As per the conversion table I linked above, 5 Workstations require 2.5 instances with Enterprise edition, but the minimum is 10. 15 Workstations required 7.5 instances, which is still less than a minimum bundle of 10.

[Gostev]

I'm still missing reliable information wether merged perpetual licenses will expire.

You can refer to the Licensing section of the What's New document for this reliable information. In short, your perpetual license will expire according to the expiration date in the corresponding contract. Merged license gets its expiration date from the contract that expires sooner (which makes sense), however you can always undo merge to get your original perpetual socket license with its original expiration date back, should you choose not to renew your subscription instances license when it expires.

[Gostev]

AFAIK, the expiration date of the license in the B&R console displays the earliest expiration date of all the merged licenses. I got confused too when I installed it. After expiration you will probably have to do an unmerge in the portal and then merge the still existing licenses again to keep it running but I'm not 100 % sure if it is really needed. Please correct me if I'm wrong!

Michael, you are correct. And yes, I'm thinking on making this exact change in the next release (still to be discussed with other stakeholders though).

[SebCharp]

Yep!
I just read the weekly e-mail. I hope somehow the French reseller will understand how the new licensing system, because I've been unable to backup my RedHat server since 1 month... I'm still waiting for a correct quotation.

[Borg]

Hello Gostev.

Can you detail a little about this gifted instance thing ?

We currently use VBR and intent to extend to Availability suite for 10 sockets (5 servers with 2 sockets each).

We also have a separate linux server that we up to until now covered with Veeam Agent.

From what you say, we could cover that server with this instance bonus system ?

[dpeach]

So what the heck does THIS mean??

•A merged license file with both sockets and instances will be set to expire according to the earliest expiring maintenance contract. However, you can always undo this merge at any time in the future to get back the standalone licenses with their original maintenance expiration dates.

I have a few agent licenses that expire over a year BEFORE my main B&R sockets. What sort of backflips do I have to do this time to keep my licenses and support intact? (Remember the Epic fail over Availability Suite license merge?)

[Gostev]

From what you say, we could cover that server with this instance bonus system ?

Yes, same with you. With 10 sockets, you will get 6 gifted instances (which is the maximum). You did not mention your product edition, but this is enough to cover agent-based backup for anywhere from 2 to 6 physical servers depending on the edition (see 2.1.1)

So you may even consider backing up some of those Borg Collective servers now!

[DGrinev]

Hi Denis and welcome to the community!

I have a few agent licenses that expire over a year BEFORE my main B&R sockets

The merged license will show you only expiration date of the contract that expires sooner.
You can find additional information in the existing thread above. Thanks!

[dpeach]

I deduced that much. What happens to the unexpired support on B&R after that date? I already paid for it!

[wishr]

Hi Denis,

You have access to your original licenses through the portal, so once the current period (taken from the Agents license) ends you can still install the original B&R license, or renew the Agents license. No drawbacks here.

BR,
Fedor

[Gostev]

Not to mention you already have that socket-only license file with the correct expiration date anyway, from the time when it was delivered to you originally with your purchase. And no one can take it away from you

So it's only in case when you lost the original license that you need to worry about all that... in which case, you'll be able to download the original license again from the customer portal, if your instances expire and you choose not to renew them.

[Sylvala]

I think the problem with the New scheme for licensing is that it change the meanning in the middle of an serie of simple upgrade (even if u4 is a big upgrade). if the New scheme was put in à New version, like a version 10. We will understant better. like you change rule in the middle of a serie of upgrade. Here now, we cannot mixed perpetual with agent server or workstation since we are with u4. All my agent job are now saying that I need a paid license,even if I have paid for them just in december. I call support and confirm me that the two for now cannot be mixed. I understant that you dont make more money with change licensing but you change it at the wrong Time.

[Gostev]

Well again, the new licensing is not about Veeam making more money, as the price does not change and is still the same as many years ago, when the subscription licensing was first introduced. The only change is technical - license file format that enables portability between different Veeam products.

Why changing now vs. 1 year from now with the next version release: the reason is exactly the number of users affected by the change. At this time, only 9% of all Veeam users have subscription, but in 1 year from now we expect 20-25%. So, we really had to rush with this change before it affects too many customers, particularly so that we can spend more time with each customer resolving their particular impact from the new licensing model.

In your case, I suspect there's some misunderstanding on someone's part - so let's dive deeper and resolve it too! Please let us know your licensing case ID.

[Sylvala]

Thanks Gotsev,

We see that it is a bit rush. I come back for my ID.